Company Number: 13114379

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: HIGH
   The company shows negative net assets (−£3,245) and net current liabilities (−£2,745) as of the latest financial year ending February 2024, indicating insolvency on a balance sheet basis. The trend from prior years shows a sharp deterioration in financial position, raising significant solvency concerns.

2. Key Concerns:

• Solvency deterioration: The company shifted from positive net assets (£224 in 2023) to negative net assets (−£3,245 in 2024), implying liabilities exceed assets.
• Working capital deficit: Current liabilities exceed current assets, resulting in negative net current assets, which signals liquidity stress and potential cash flow constraints.
• Dependence on directors’ loans: The notes reveal director loans being written off and reduced, suggesting reliance on insider funding and possible cash flow pressures.

3. Positive Indicators:

• The company remains compliant with filing deadlines for both accounts and confirmation statements, indicating no immediate regulatory compliance issues.
• Directors are consistent and stable, with no disqualifications or changes, suggesting governance continuity.
• The company is classified as a micro-entity, which implies a smaller operational scale and potentially lower overhead costs.

4. Due Diligence Notes:

• Investigate the causes of the sharp decline in assets and the increase in liabilities between 2023 and 2024.
• Clarify the nature and future prospects of the business operations given the SIC codes spanning freight and passenger air transport plus management consultancy, which may entail diverse cash flow profiles.
• Review director loans and transactions to assess any related party risks and repayment plans.
• Understand if the company has access to additional financing or capital injections to address negative equity and working capital deficits.
• Confirm whether the company has any contingent liabilities or off-balance-sheet obligations not reflected in the accounts.